Despite ESG Backlash, Customers Want More Sustainability & Information About It

11 December 2023 / Quick Take

While about half of US companies have experienced backlash from policymakers who have been critical of corporate environment, social, and governance (ESG) initiatives, the demand for information about sustainability is nonetheless growing in both B2B and B2C marketplaces. Businesses need the information to respond to regulations and support their own ESG agendas. Consumer interest is driven by multiple factors including extreme weather events and concerns about brands’ values.

Trusted Insights for What’s Ahead™

In late 2023, only 47% of US consumers said they felt well-informed about corporate sustainability initiatives, according to our latest sustainability-focused consumer survey. This suggests companies have an opportunity to communicate their sustainability initiatives more effectively—to both B2C and B2B customers.

Who wants more credible communications about ESG and sustainability initiatives—and who wants less?

Source: Despite ESG Backlash, Customers Want More Sustainability & Information About It, The Conference Board, 2023

How to effectively communicate sustainability initiatives to customers

Trusted Insights for What’s Ahead™

Who wants more credible communications about ESG and sustainability initiatives—and who wants less?

Source: Despite ESG Backlash, Customers Want More Sustainability & Information About It, The Conference Board, 2023

How to effectively communicate sustainability initiatives to customers

Convey complex sustainability topics in simple language and in terms that are neutral and don’t potentially trigger objection. (See Apple’s Mother Nature and United Airlines’ Oscar the Grouch campaigns as creative examples).
Highlight the economic benefits of sustainability initiatives (e.g., new local jobs) as more broadly accepted advantages of sustainability.
Communicate smaller sustainability actions serving near-term goals rather than distant ones. If you need to revise 2025 or 2030 goals, be proactive and transparent in explaining why.
Avoid speaking out publicly on social and political issues unless they relate to the brand’s “DNA” or business operations since it can decrease the brand appeal for consumers. Companies can still address issues that affect employees internally. Frameworks to decide whether and how to take a stance can foster consistent decisions.
A clear, consistent, and credible sustainability story can help deflect potential attacks from the campaign trail in the upcoming election season.